Chart of the day: eating at home is becoming increasingly popular

The fact that Americans often eat outdoors is generally known. Yet spending on groceries has increased considerably.

Last year, the spending on groceries has increased tremendously. It was the largest increase in 32 years. This indicates that the average US citizen is spending more.

The low oil price ensures people have some extra money to spend on other things. People like to spent it on groceries. Of course, the popularity of the barbecue helps. Americans love grilling and eating big. This reversal seems to fall from the sky but we really can observe a trend reversal.

The chart below shows an increase in spending on groceries

The above graph can be explained by looking at restaurants. Most restaurants increasingly have to deal with rising labour costs. This creates pressure on the sector that is having hard times anyway.

Competition among restaurants is fierce. Fast food chains are still more popular than the “ordinary” restaurants and try to lure clients with “healthy” snacks like salads or an apple. In addition, customers expect fresh products and high quality food at a low price. Fortunately, food prices have fallen but rising labour costs eliminate this advantage.

This tough situation for restaurants causes the quality of the menu to decline or the prices to go up. This causes an increase in spending on groceries because more and more people are choosing to eat at home.